Chandigarh, Sep 20 (IANS): The Punjab Vigilance Bureau has registered a criminal case against two officials and the former Chairman of a cooperative bank for embezzlement of loans totalling Rs 12.30 crore, a government spokesperson said on Tuesday.

"Central Cooperative Bank's Gurdaspur District Manager Sarbjit Singh and former Chairman Balbir Singh, as well as Bank's Batala Branch Manager Balwinder Singh sanctioned and disbursed loans totalling Rs 12.30 crore to 50 beneficiaries in 2010-2013. As loan instalments were never paid, the amount accumulated to over Rs 19.77 crore, thus causing a huge loss to the bank," he added.

He said they also approved and handed over dairy loans of Rs 40 lakh each to nine beneficiaries on the basis of fake investigation reports since properties mortgaged to the bank were out of its jurisdiction area.

The accused also sanctioned four more loans on forged documents. During investigation, it was found many beneficiaries were not residing at given addresses and held no property to avail of loans, the spokesperson added.

"Balbir Singh, during his tenure, got huge bank loans on the basis of his property documents. Without mortgaging the same to the bank in revenue records, he mischievously transferred his pledged land holdings to his relatives," he said.